Florida Contractor Pays $123,650 In Back Wages, Benefits After U.S. Department of Labor Investigation

KENNEDY SPACE CENTER, FL – Fine Tune Enterprises Inc. - a cleaning service company based in Orlando, Florida - has paid $123,650 in back wages and fringe benefits to 44 employees after a U.S. Department of Labor's Wage and Hour Division (WHD) investigation found the employer violated labor requirements of the Davis Bacon and Related Acts (DBRA) and the Contract Work Hours and Safety Standards Act (CWHSSA).

WHD determined that the employer paid its employees incorrect prevailing wage and benefit rates when it used the rates assigned to a janitor under the McNamara-O'Hara Service Contract Act, instead of general laborer rates applicable under DBRA and required for the work performed. Applying the wrong rates also led to the employer's failure to pay the required overtime rates, and to maintain accurate wage information on the employer's certified payrolls. In addition, the employer failed to display federal labor posters and prevailing wage information properly at the job site.

The prime contractor, Hensel Phelps, subcontracted Fine Tune Enterprises Inc. to perform cleanup work with NASA funds at the John F. Kennedy Space Center. WHD determined Hensel Phelps provided the incorrect wage determination to Fine Tune Enterprises in their contract, leading to the wage discrepancies. To remedy the error, Hensel Phelps issued a check for the full amount of back wages and fringe benefits to the subcontractor for payment to the affected employees. The DBRA requires contractors and subcontractors performing work on federal and certain federally funded projects to pay workers prevailing wage rates and fringe benefits as determined by the U.S. Secretary of Labor and as included in their contracts.

"All contractors and sub-contractors must ensure they are thoroughly aware of all requirements associated with performing work on federally funded projects," said Wage and Hour Division District Director Daniel White, in Jacksonville, Florida. "We offer a wide variety of tools to help employers understand their responsibilities, including a series of Prevailing Wage Seminars, currently underway across the country, where we offer free training for all interested stakeholders."

For more information about the FLSA, DBRA, CWHSSA, and other laws enforced by the Division, contact the Division's toll-free helpline at 866-4US-WAGE (487-9243) or visit the Division's web site. The Division also offers a search tool which allows users to determine if you are owed back wages collected by the Division.